Tourism boosts Fiji's economic growth, says ADB-Xinhua

Tourism boosts Fiji's economic growth, says ADB

Source: Xinhua

Editor: huaxia

2024-04-12 19:14:30

SUVA, April 12 (Xinhua) -- Continued recovery in tourism has boosted Fiji's economic growth in 2023, with visitor arrivals exceeding pre-pandemic levels, according to the Asian Development Bank (ADB) in its April outlook.

The bank said pent-up demand led to record visitor arrivals despite high global inflation and tight monetary policies in key tourism markets, reported Fiji Broadcasting Corporation on Friday.

It added that services buoyed by the tourism industry continued as the main driver of economic activity, which had positive spillover effects on wholesale and retail trade, transportation, construction and finance.

Tax reforms and increased demand supported robust government revenue despite tight labor market conditions from worker migration, according to the ADB.

However, it said Fiji's economic outlook is sluggish due to a projected slowdown in travel demand and significant capacity limits in tourism.

Major government-led reforms are likely to generate new private sector investment but their full impact may not be felt for several years, the ADB added.